Here are my notes from their Q4FY21 concall
- Very positive commentary, focused on growth at good ROCEs (14-24%)
- Mumbai launches (Verve in Goregaon, Vaayu in Dahesar): Seeing encouraging traction despite challenging covid, have 3-different redevelopment projects in pipeline (potential of 700 cr.)
- Expect sales from Mumbai to double in FY22
- Acquired 5 projects with a combined saleable area of 3.5 msf in the last four months
- Current inventory of ~3mn sq.ft which is good enough for Q1 and Q2. Should have 5mn sq.ft inventory by end of H1FY22. Should be surpassing all previous numbers in FY22. Aim is to have ~5mn sq.ft of sales by FY24
- Was hoping to maintain 0.85 mn sq.ft quarterly run-rate in sales. Q1 has been impacted because of COVID. If everything falls back in place, should exceed 3mn sq.ft in FY22
- In redevelopment projects, there is a contractual timeline for execution giving lower scope for flexibility in launch dates
- Raw material inflation: Will look to increase prices by Rs. 500-800, if not possible then will try to optimize working capital to maintain project level IRRs
- In regular business, 3-4% cancellation happens. Currently, 90% of demand is from owners and 10% from investors
- Currently, 70-75% of labor is available
- ROCE should be 14-24% in the next few years, 20%+ EBITDA and 10%+ PAT. Want to maintain net debt/equity < 0.5
- 8-10 projects at any given time is within management bandwidth
Disclosure: Invested (position size here)